Washington, D.C., USA: H-1B Visa Fee Surge: $100K Cost May Push IIT Talent Away from U.S. Startups, Warns Yale Expert
A recent move by U.S. President Donald Trump to raise the H-1B visa fee to $100,000 has triggered strong reactions among global scholars and policy analysts. Gautam Mukunda, a researcher at Yale University, described the measure as “self-defeating,” warning that such a steep hike could drastically undermine America’s ability to attract top international talent.
For decades, the H-1B visa has been a crucial pathway for the United States to recruit world-class engineers, scientists, and innovators. Mukunda cautioned that this drastic change could discourage bright minds from considering America as a destination. He particularly pointed out the immense contribution of graduates from India’s Indian Institutes of Technology (IITs), labelling them as a priceless resource that the U.S. risks alienating.
“Every other country would fight hard to bring in IIT graduates, yet America is effectively pushing them away,” he said, stressing that this decision “makes absolutely no sense.”
IIT Graduates at Risk of Leaving U.S. Innovation Ecosystem
The IITs are internationally recognised for producing exceptional engineers and problem-solvers who have fueled U.S. startups, tech giants, and research organisations for decades. By inflating the cost of hiring foreign talent, the U.S. could lose its competitive advantage to nations with friendlier immigration rules and lower entry barriers.
Mukunda highlighted the bigger economic concern: in today’s knowledge-driven world, restricting talent flow can harm long-term growth far more than the short-term financial gains such visa fees generate. Countries that welcome global professionals continue to thrive in technology and innovation—sectors where the U.S. has historically led but now faces increasing competition from other rising tech hubs.
India’s Global Contribution to Talent and Innovation
While the U.S. tightens visa rules, India continues to strengthen its reputation as a hub for skilled professionals. At the U.S.-India Strategic Partnership Forum, India’s Commerce and Industry Minister, Piyush Goyal, emphasised the value Indian engineers and innovators bring to the global stage.
“India provides a vast pool of highly skilled engineers and graduates recognised worldwide for their creativity and innovation,” Goyal said. “Our professionals drive research, development, and new ideas, helping corporations around the globe, including in the U.S., remain competitive.”
India’s Growing Startup Ecosystem
Goyal also drew attention to India’s flourishing startup culture, which has become a key driver of entrepreneurship and technological advancement. Many Indian startups are offering solutions beyond traditional industries, shaping new business opportunities worldwide.
He noted that this rise reflects Prime Minister Narendra Modi’s vision, which he began promoting as Chief Minister of Gujarat back in 2010. Today, India stands as a global hub for startups and innovation, creating fertile ground for international partnerships.
Expanding Clean Energy Capacity
Alongside technology and startups, India is also making strides in renewable energy. Goyal highlighted the country’s ambitious plans to significantly boost its clean energy capacity within the next five years, opening doors for sustainable development and international collaborations.
Experts warn that as India builds global partnerships in areas like clean energy and tech innovation, the U.S. risks losing access to such talent and expertise due to restrictive visa measures. Mukunda cautioned that the $100,000 H-1B fee hike could backfire, causing America to lose its long-standing edge in technology, research, and economic growth.
Historically, skilled international professionals have been central to U.S. leadership in innovation. But policies that make it harder for them to work in the country could trigger a long-term decline in competitiveness and global influence.
